Please provide your answers for the following questions based on The Walt Disney Company, Inc based on the 2019 10-K.”?
1. You are to value The Walt Disney Company, Inc based on the 2019 10-K.
2. The valuation techniques to be used are: 1) Discounted Cash Flow and 2) Market Multiples.
3. Assumptions should be based on CURRENT EVENTS in the global economy.
4. You are to obtain any PRE-COVID 19 stock analyst report dated towards the end of 2019 and compare it to your derived at intrinsic value knowing the unfortunate subsequent events of COVID-19.
5. The point of this exercise is to demonstrate how assumptions can deeply affect valuations.
6. In terms of the report, simply explain the growth assumptions used based on COVID-19 realities.
7. I DO NOT WANT THIS ASSIGNMENT TO BE A FULLY-DEVELOPED VALUATION REPORT. IT IS SIMPLY A 5 TO 8 PAGE REPORT SHOWING THE ASSUMPTIONS USED AND HOW THOSE ASSUMPTIONS DETERMINED THE INTRINSIC VALUE.
8. The asset method is to be ignored for this assignment.
9. In the assumptions, you need to take into consideration the various industries that the Walt Disney Company happens to be situated into.
NNB: To value The Walt Disney Company, Inc based on the 2019 10-K, you will need to follow the following steps:
1. Valuation Techniques: Use Discounted Cash Flow (DCF) and Market Multiples methods.
2. Current Events Consideration: Ensure that your assumptions are grounded in current events in the global economy.
3. Stock Analyst Report: Obtain a pre-COVID-19 stock analyst report from late 2019. Compare the derived intrinsic value from your valuation to understand the impact of COVID-19 on the company.
4. Assumptions Impact: Demonstrate how different assumptions can significantly influence valuations.
5. Growth Assumptions: Explain the growth assumptions you used, considering the realities of COVID-19.
6. Scope of the Report: Keep the report concise, focusing on assumptions and intrinsic value determination in 5 to 8 pages.
7. Ignore Asset Method: Exclude the asset method from this assignment.
8. Industry Consideration: Take into account the various industries in which The Walt Disney Company operates when making assumptions.
By following these steps, you can effectively value The Walt Disney Company, Inc based on the 2019 10-K, considering the impact of COVID-19 and the current global economic landscape. Remember, the key is to demonstrate how different assumptions can lead to varied valuations, showcasing the importance of thorough analysis and critical thinking in financial valuation processes.